LAS VEGAS - The NBA announced the salary cap for the 2013-14 season will be $58.679 million. The luxury tax level will be $71.748 million.
The salary cap and tax level take effect at 12:01 a.m. ET on Wednesday, July 10, when the NBA moratorium period ends and teams can begin signing free agents and making trades.
Instead of paying $1 for every dollar over the tax, the penalties are harsher under the new collective bargaining agreement:
Portion of team salary $0-$4.99 million over tax level: $1.50 for $1
Portion of team salary $5-$9.99 million over tax level: $1.75 for $1
Portion of team salary $10-$14.99 million over tax level: $2.50 for $1
Portion of team salary $15-$19.99 million over tax level: $3.25 for $1
Rates increase by $0.50 for each additional $5 million of team salary above the tax level.
The minimum team salary for teams is 90 percent of the cap, $52.811 million for the 2013-14 season.